Formulas C2 Flashcards
Index Numbers (%) C2
Value in Period/Value in base period X 100
Price Elasticity of Demand C2
% change in quantity demanded/% change in price
Income Elasticity of Demand C2
% change in quantity demanded/% change in income
3 point moving average C2
Month A + Month B + Month C/3
&
Month B + Month C + Month D/3
Variance C2
Budgeted Figure - Actual Figure
Working Capital C2
Current Assets - Current Liabilities
Capital Employed C2
Share Capital + Retained Earnings + Long-term borrowings
Depreciation C2
Initial cost - Residual Value/Useful life of the asset
Return On Capital Employed (ROCE) (%) C2
Operating Profit/Capital Employed X 100
Current Ratio C2
Current Assets/Current Liabilities
Acid Test C2
Current Assets - Stock/Current Liabilities
Gearing Ratio (%) C2
Non-current liabilities/Capital employed X 100
Expected Value C2
Estimated financial effect X probability
Net Gain C2
+ Expected Value & - cost of decision
Earliest Starting Time (EST) C2
EST of last activity + Duration of last activity (left to right)
Latest Finishing Time (LFT) C2
LFT at end of next activity - Duration of next activity (right to left)
Float Time C2
LFT at end of task - (task duration + EST at start of task)
Payback C2
Cost of initial investment/Net Cash earned per time period
Average Rate of Return ARR (%) C2
Average Annual Profit/Investment Cost X 100
Discount Value/Net Profit Value (DCF/NPV) C2
- Multiply each year’s net cash flow by discount rate of the year
- Total the discounted net cash flows and - initial investment
Outline the 3 ways to calculate contribution for Special Orders C2
- Contribution per unit = SP - VC per unit
- Total contribution = Contribution per unit X units sold
- Total revenue - Total Variable costs
